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Employee Benefit Trends For International Employee Benefit Trends For International AssigneesAssignees
BackgroundBackgroundThe Global Employee Benefit Survey is sponsored by
Employee Benefit Solutions, Inc. (EBS) and is one of six industry and market based surveys conducted by EBS each year.
This document is intended to provide an overview of some of the key findings of in the 2012 survey. The detailed survey results are available to survey participants only.
Contact information is available at the end of this overview if you are interested in gaining access to the more detailed survey results through participation in future surveys.
2012 Global Employee Benefit Survey2012 Global Employee Benefit Survey
International Health Care TrendsInternational Health Care TrendsInternational health care trend has been in the low double digits for the last several years and is likely to remain elevated in the coming years
Key Drivers to This TrendKey Drivers to This Trend-Increased investment in health care infrastructure and technologies globally-Increased demand for health care services-Aging global population-Constrained social systems – cost shifting
Changes in the Marketplace – New Players EnterChanges in the Marketplace – New Players Enter-MetLife, United Health International and Blue Cross expand their international capabilities-Positive trend or temporarily shuffling of the deck?
Employee Benefit Trends For International Employee Benefit Trends For International AssigneesAssignees
Demographic TrendsDemographic Trends-Expatriate population is older and has longer service compared to domestic counterparts
- Median age – 46- Median length of service – 6.6 years
-68% of the population was over the age of 40-39% of the population was over the age of 50-Significant exposure to the ‘bust’ from the baby boom generation. Retiring boomers as the demand for skilled labor in the oil sector is increasing.
Employee Benefit Trends For International Employee Benefit Trends For International AssigneesAssignees
Expatriate Health TrendsExpatriate Health TrendsEmployers shoulder greater cost burden-Median employer cost increase of 7.1%-Median employee cost increase of 1.3%-Median subsidy level of 80%
Limited evidence of benefit plan changes
Non-U.S. expatriate or Third Country National Non-U.S. expatriate or Third Country National (TCN) employees(TCN) employees
- Richer plan design compared to U.S. expatriates - Median net cost is $2,276 compared to expatriate median
net cost of $8,816
Factors Influencing Lower Overall CostsFactors Influencing Lower Overall Costs- Treatment typically secured in lower cost locations (care
typically excluded or limited in the U.S.)- Dependents may remain on home country social health care
system or may not be covered at all- Annual maximums put an upper limit on plan exposure
Employee Benefit Trends For International Employee Benefit Trends For International AssigneesAssignees
Local ProgramsLocal Programs
63% of participants reported that they were increasing the utilization of local hires.
Localization Localization -Field Personnel 100%-Administration 77%-Management 54%
Ranking of importance of local benefitsRanking of importance of local benefits-Supplemental Health-Life Insurance -Retirement/Severance-Disability
International AssigneesInternational Assignees
Top Challenges Top Challenges Supporting International AssigneesSupporting International Assignees
CommunicationsCommunications•69% - Produce expat/TCN specific communications•58% - Formal branded HR communication strategy•54% - HR/Benefit Intranet or website
Benefit Risk AssessmentBenefit Risk Assessment
Challenges that international assignees pose to Challenges that international assignees pose to domestic benefit programsdomestic benefit programs-Review eligibility language – watch for carrier limitations
- Types of employees covered- Locations of coverage
-Flexibility to support international mobility-Shifts in underwriting capacity for international exposure
Be aware of local insurance requirements or Be aware of local insurance requirements or restrictionsrestrictions- One size does not fit all- Administrative issues associated with tracking international assignees
Thank You for your time and participationThank You for your time and participation
Cliff Caldwell, GPHRCliff Caldwell, GPHRGlobal Solutions Practice LeaderGlobal Solutions Practice LeaderEmployee Benefit Solutions, Inc. Employee Benefit Solutions, Inc. [email protected]@ebenefitsolutions.com